The crypto market continues to recover from the collapse of FTX, but it has been hit with yet another setback as a leading crypto lending firm, Genesis Global Capital, has filed for bankruptcy protection.
As one of the largest crypto lenders, Genesis had frozen customer redemptions on November 16, 2022, shortly after FTX filed for bankruptcy. Furthermore, on January 12, 2023, Genesis and the Gemini exchange were charged by the Securities and Exchange Commission (SEC) with illegally selling securities to investors.
Genesis Bankruptcy: Liabilities And Assets Revealed
As per reports, Genesis Global Capital has stated that it has over $150 million in cash that will be used as liquidity to support its current operations and restructuring process. The company’s bankruptcy filing claims that its liabilities and assets fall between $1 billion and $10 billion.
Additionally, Genesis Global Capital’s parent company, Genesis Global Holdco, and another lending firm, Genesis Asia Pacific, have also filed for bankruptcy.
The bankruptcy filing also lists several large creditors, including renowned crypto exchange Gemini, trading platform Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund. Among these creditors, Genesis owes $766 million to Gemini, $151.5 million to Crypto-fund Mirana, $150 million to MoonAlpha Finance, $18.7 million to Cumberland, and $53 million to VanEck’s New Finance Income.
There are also two unknown creditors where Genesis owes $462.2 million and $230 million, respectively.
Market Recovers, Prices Rise
Amidst this news, the world’s largest cryptocurrency, Bitcoin, experienced a drop of nearly 0.5%. However, the market has since recovered, with Bitcoin gaining 0.62% in the last 24 hours and trading just below $21,000. Other currencies, such as Ethereum, XRP, Cardano, and other altcoins, have also seen similar recoveries.
It is important to note that the upcoming days are crucial for the crypto market as the outcome of Genesis’s further investigations will have an impact on the industry.
What is your opinion on the recent bankruptcy filing of crypto lending firm Genesis Global Capital and the potential impact it may have on the crypto industry? Do you think this could be a setback for the market or is it a necessary step for the long-term stability of the industry?